Daily economic news from the Czech Republic: overview of the past 24 hours (6.2.2025)

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Overview of the latest economic events in the Czech Republic
In the past 24 hours, the Czech Statistical Office published preliminary data showing that consumer prices rose by 2.8 % in January, indicating a possible rise in inflation. In response, the Czech National Bank (CNB) cut the key interest rate by 0.25 percentage point to 3.75 % in order to support economic activity. This is the lowest rate since January 2022. The Prague Stock Exchange saw notable activity as major turbine manufacturer Doosan Škoda Power made its market debut. The company's shares saw a 16% increase in value during opening trading, reflecting strong investor confidence. Overall, increased trading volumes were recorded on the PSE, particularly in the energy and industrial sectors, indicating strong market participation.

Foreign investments - trends and interesting facts
The energy company EPH, headed by Czech billionaire Daniel Křetínský, has finalised an agreement to take over the Italian group Enel's 50% stake in their joint holding company, which owns a majority share in Slovak electricity producer Slovenské Elektrárne. The acquisition is expected to strengthen EPH's position in the Central European energy sector, particularly in the nuclear and hydro power sectors. The transaction is expected to close in the first half of 2025, subject to regulatory approvals. Czech power producer CEZ announced plans to acquire a 20% stake in Rolls-Royce SMR to collaborate on the deployment of small modular reactors in the Czech Republic and other regions. This initiative reflects CEZ's commitment to developing nuclear power solutions and diversifying its energy portfolio. The partnership is expected to facilitate the development of up to 3 gigawatts of capacity in small nuclear power plants and contribute to the country's energy security and sustainability goals.

Significant events outside the Czech Republic with global impact
In the past 24 hours, world stock markets have shown mixed results. The US NASDAQ and NYSE saw modest gains thanks to a strengthening technology sector, while London's FTSE 100 and Frankfurt's DAX struggled with investor concerns over interest rate policy. Asian markets, including Japan's Nikkei and China's Shanghai Composite, faced declines due to uncertainty over Chinese industrial production. These fluctuations are significant for the Czech economy as changes in international investor sentiment affect capital flows to emerging markets, including the Prague Stock Exchange. International trade developments are changing, with the European Union negotiating a new framework for industrial exports with major global partners.

As an export-oriented economy, the Czech Republic is closely following these agreements, especially in the automotive and engineering industries. Any new tariffs or changes in regulation could have an impact on Czech manufacturers dependent on European and Asian supply chains. The Czech government has engaged in discussions with its European partners on energy security and has focused on diversifying gas and electricity sources in the face of price volatility. The Czech Republic's involvement in Central Asian markets is also growing as companies seek to expand business partnerships in developing economies. This is part of a broader effort to reduce economic dependence on Western European markets and to seek alternative sources of raw materials and industrial cooperation.

Impact on the Czech economy
With the change in global trade agreements, Czech exporters have to deal with possible regulatory changes, especially in the automotive and engineering industries. Ongoing EU negotiations with key trading partners may open up new opportunities, but also introduce stricter compliance requirements. The government is working on economic reforms to ensure that Czech businesses remain competitive in emerging markets. As the Prague Stock Exchange (PSE) faces fluctuations, investors are closely monitoring market stability. The government is considering tax incentives for strategic sectors to attract domestic and foreign capital. With major Czech companies such as EPGC and CSG expanding abroad, securing the confidence of foreign investors in the Czech markets is a priority to sustain economic growth.

Current exchange rates according to the CNB and Google Rates

Source about precious metals and Bitcoin: tradingeconomics.com

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photo: simenspress.cz